Stocks
Stocks are securities issued by joint-stock companies to shareholders to prove their shares. They can be used as trading objects and collaterals and are the main long-term credit in the capital market. One of the tools.
A stock is a shareholder's certificate of ownership when he or she invests in a company and obtains income. By holding it, he or she owns a share of the company's capital and becomes one of the company's owners. Shareholders not only have the right to withdraw from the company in accordance with the company's articles of association. Receive dividends and share the company's operating dividends, and also have the right to attend shareholders' meetings, elect the board of directors, and participate in business management decisions. Therefore, shareholders' investment wishes are realized through their exercise of shareholder participation rights. At the same time, shareholders must also bear corresponding responsibilities and risks.
Stocks are securities that will never be repaid, and a joint-stock company will not repay the principal to the holders of the stocks. Once a stock is purchased, it has no right to request withdrawal from the joint-stock company. The shareholder's funds can only be recovered through the transfer of the stock. The shareholder identity and various rights and interests represented by the stock are transferred to the transferee, and its stock price The transfer is affected by various factors such as company income, company prospects, market supply and demand, and economic situation. Therefore, investing in stocks has certain risks.
In the stock market, companies that issue stocks issue different stocks based on the investment needs of different investors. According to different standards, stocks can be divided into several categories. The stocks we usually refer to refer to A-shares listed and traded on the Shanghai and Shenzhen Stock Exchanges. These A-shares can also be called tradable shares, public shares, and ordinary shares.
As a kind of ownership certificate, stocks were originally printed on paper, such as the old eight-gu stock in Shanghai. In this paper-based method, the stock paper usually records the face value of the stock, the name of the issuing company, the stock number, the date of establishment and registration of the issuing company, the issuance date of the stock, the signatures of the chairman and directors, the nature of the stock, and other matters. With the development of modern electronic technology, electronic stocks have emerged. This kind of stocks has no paper certificates. It generally stores relevant matters in a computer center. Shareholders only hold one shareholder account card, and the holdings can be checked through the computer terminal. The type and quantity of stocks, this electronic stock is also called paperless stock. At present, my country's stocks listed on the Shanghai and Shenzhen exchanges basically adopt this method.
How to trade stocks
Due to the rapid development of my country's securities market, both Shenzhen and Shanghai stock exchanges have now realized paperless and electronic transactions. Investors must enter the stock market. First go to the local securities registration agency to open Shanghai and Shenzhen stock accounts respectively. Only with a stock account can you conduct stock transactions.
When opening stocks, investors must present a valid identity document (usually an ID card) and provide detailed information about the investor, including: name, gender, ID number, home address, and contact number. wait.
After opening a stock account, investors need to open a capital account at a securities firm (securities company), and this capital account is only valid for trading at that securities firm. If investors need to trade at other securities firms, they need to open separate capital accounts. Therefore, one investor can have multiple capital accounts. For deposits in investors' capital accounts, securities firms pay interest based on bank demand deposit rates.
Investors can enter the market for trading after opening a stock account and capital account. The order form filled out by the customer to buy and sell stocks is a document that establishes the agency relationship between the customer and the securities firm and is legally binding. Currently, in addition to form-filling entrustment, the entrustment methods provided by securities firms in our country include self-service entrustment, telephone entrustment, video phone entrustment, entrustment machine entrustment, online entrustment, etc. The entrustment content must be truthfully accepted by the brokerage firm. If the transaction result does not match the entrustment content, , customers can make representations to the securities firm to safeguard their legitimate rights and interests. When a brokerage accepts a client's entrustment, it is generally reviewed by the brokerage's computer commissioning system. After the review is correct, the transaction is directly entered into the computer host in the exchange for matching transactions. The exchange's automatic matching system operates based on the principle of "price priority, time priority", that is, within a certain price range (between 10% above and below yesterday's closing price), priority is given to matching the highest buying price or the lowest selling price.
The current operation of the securities market is characterized by the automation of transactions and paperless share clearing and transfer. Customers must go to the securities firm for delivery on the next trading day of the entrusted transaction, that is, the customer and the securities firm Go through the procedures for fund clearing and share transfer for the completed transaction. This procedure is commonly known as "pay with one hand and deliver with one hand." The delivery note provided by the securities firm to the customer must list the detailed information of the customer's current purchase and sale transaction. At this point, the customer's stocks The transaction just ended.
What are the fees for stock transactions?
Securities investors in my country should pay various fees and taxes when entrusting the purchase and sale of securities. These fees can be divided into securities dealer fees, transaction fees according to the collecting institution. Venue fees and state taxes.
Currently, when investors trade A-shares, funds, and bonds listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange at Chinese securities firms, the fees they need to pay mainly include: entrustment fees, commissions, stamp duties, transfer fees, etc.
Entrustment fee, which is mainly used to pay for communications and other expenses. Generally calculated on a transaction basis, when trading Shanghai stocks and funds, local securities firms in Shanghai charge 1 yuan per transaction, and foreign securities firms charge 5 yuan per transaction; when trading Shenzhen stocks and funds, securities firms charge 1 yuan.
Commission, which is the fee that investors need to pay to the broker after the entrusted transaction is completed. Shanghai stocks, funds and Shenzhen stocks are paid to brokers at 3.5% of the actual transaction amount. The starting commission for Shanghai stocks and funds is 10 yuan; the starting commission for Shenzhen stocks is 5 yuan; and the commission for Shenzhen funds is 3.5% of the actual transaction amount. A commission of three thousandths is charged; the maximum commission for bond trading shall not exceed two thousandths of the actual transaction amount, and may be appropriately reduced for large transactions.
Stamp duty is a tax paid by investors to the finance and taxation department after the transaction is completed. Both Shanghai stocks and Shenzhen stocks are paid at a rate of four thousandths of the actual transaction amount. This tax is withheld by the brokerage and paid uniformly by the exchange. Bond and fund transactions are exempt from this tax.
Transfer fee, which refers to the fee required to change the account name after the stock transaction. Due to the different operating methods of my country's two exchanges, Shanghai stocks adopt "central registration and unified custody", so this fee is only paid when investors trade Shanghai stocks and funds, and there is no such fee when trading Shenzhen stocks. . This fee is paid based on one thousandth of the number of stocks traded (in units of each share). If the amount is less than 1 yuan, it will be charged at 1 yuan.
Transfer custody fee, which is the fee paid when handling Shenzhen stocks and funds transfer custody business. This fee is calculated on a per-household basis, and each household needs to pay 30 yuan to the transferor securities firm when handling the custody transfer.
Why handle designated transactions
Since Shanghai stocks are centrally managed by the Shanghai Stock Exchange, investors’ Shanghai stocks can be traded at any securities firm. In order to ensure that investors’ stocks To be safe, the Shanghai Stock Exchange has launched a "designated trading" service, which allows investors to voluntarily select a securities firm and restrict their Shanghai stock transactions to only this securities firm and not to other second securities firms to prevent their stocks from being traded at other securities firms. Stolen sales to ensure the safety of their stocks. "Designated transactions" can only designate one and only one securities firm. If you re-"designate transactions" at a second securities firm, you must go through the "designation revocation" at the original "designated" securities firm before you can conduct "designated transactions" at the second securities firm. Such designated transactions can be processed and canceled at any time.
Benefits of handling designated transactions:
Enhanced stock security: If an investor's Shanghai stock account is lost, he only needs to go to the designated securities firm to report the loss, and the safety of his stock will be guaranteed; Otherwise, if someone else finds it, they can sell it to any other securities firm for cash.
Shanghai stock dividends are automatically credited: After a designated transaction is processed, if an investor’s Shanghai stock dividends are not received during the listing period, the Shanghai Stock Exchange will automatically distribute the dividends to the investor on the last day of listing. Investors do not need to go through any procedures to register their accounts; otherwise, investors must go to the securities registration company or a designated location to get a replacement.
You can enjoy the stock reconciliation sent by the Shanghai Stock Exchange: For accounts that have handled designated transactions, you can check the Shanghai stock balance at the designated brokerage on the next trading day when the Shanghai Stock Exchange sends reconciliation data from time to time.
The Shanghai Stock Exchange does not send the stock balance of unspecified trading accounts, and you can only apply for inquiry at the securities registration company.
Prevent others from being mistakenly designated: Accounts that have handled designated transactions cannot be mistakenly designated by other investors. Accounts that have not handled designated transactions may have their stocks locked due to misdesignation for other reasons, resulting in the inability to trade normally.
Investors who have opened a Shanghai stock account can use the trading system to entrust the brokerage. The entrustment method is as follows: the buying and selling direction is "buy", the code is "799999", and the price is "1", the quantity is "1". Delivery confirmation will be processed on the next trading day, and the designated transaction will take effect on the designated next day.
How to match stocks to transactions
After accepting the investor’s buying and selling order, the securities operating institution should immediately transmit the information to the exchange host in chronological order and make public declarations and bids. When bidding for stocks, call bidding or continuous bidding can be used in accordance with relevant regulations. The exchange's matching machine will automatically match the transaction based on the principle of "price priority, time priority".
At present, both Shanghai and Shenzhen exchanges have call bidding and continuous bidding. 9:15-9:25 am is the collective bidding time, and the remaining trading times are continuous bidding times. During the call auction period, the exchange's automatic matching system only stores but does not match. When the application bidding time ends, the matching system will generate the opening price of the stock on that day based on the call auction principle. The first day of listing and trading of new shares in Shanghai and Shenzhen is not subject to the 10% limit on the price increase or decrease. However, during the call auction on the day of listing of new shares in Shenzhen Stock Exchange, the entrusted bidding cannot exceed 15 yuan plus or minus 15 yuan of the issue price of the new shares. Otherwise, the bid will be held in the call auction. If the bid is invalid, you can only participate in subsequent consecutive bidding.
After the collective bidding ends, the continuous bidding time will enter, namely 9:30-11:30 and 13:00--15:00. After investors' buying and selling orders enter the exchange's host, the matching system will automatically match based on the principle of "price priority, time priority". When the same price is reached, the matching will be done in order of time. When matching transactions, the principles for determining the stock transaction price are: ⒈The range of the transaction price must be within 10% of yesterday’s closing price; ⒉The highest buy order and the highest sell order are at the same price; ⒊If the buyer (seller) side When the declared price is higher (lower) than the seller’s (buyer’s) declared price, the average of the prices declared by both parties will be used. If the exchange host matches the transaction, the host will immediately report the transaction information to the broker for investors to inquire. If the transaction is not completed or is partially completed, investors have the right to cancel their entrustment or continue to wait for the transaction. Generally, the entrustment is valid for one day.
In addition, the closing price of a Shenzhen stock market is not the last transaction price of the stock that day, but the transaction amount divided by the transaction volume in the last minute of the day when the stock was traded.
How listed companies distribute profits
According to the "Company Law", the company's profits after paying income tax should be used to make up for losses, withdraw statutory surplus reserve funds, withdraw public welfare funds, and pay preferred stock dividends. , withdraw discretionary surplus reserve fund, and pay common stock dividends in the order of distribution. The company shall not distribute dividends before making up for its losses and withdrawing statutory surplus reserve fund and public welfare fund. The company's reserve fund is used to make up for the company's losses, expand the company's production and operations or convert it into company capital. The public welfare funds withdrawn by the company are used for the collective welfare of the company's employees.
When a company distributes its after-tax profits for the year, it shall withdraw 10% of the profits to the company's statutory public reserve fund and 5-10% of the profits to the company's statutory public welfare fund. If the surplus reserve fund has reached 50% of the registered capital, it does not need to be withdrawn. If the company's statutory reserve fund is insufficient to make up for the company's losses in the previous year, the current year's profits should be used to make up for the losses before withdrawing the statutory reserve fund and statutory public welfare fund in accordance with the aforementioned conditions. After the company withdraws the provident fund from its after-tax profits, it may withdraw any discretionary provident fund upon resolution of the shareholders' meeting. The company can, with the approval of the shareholders' meeting, convert the reserve fund into share capital (this is usually the amount of 10 converted in the dividend announcement of listed companies), issue new shares to shareholders in proportion to their original shares, or increase the par value of each share. However, when the statutory surplus reserve fund is converted into share capital, the reserve fund retained after the conversion shall not be less than 25% of the registered capital.
If the company has no profit for the year, it shall not distribute dividends. However, after the company uses the surplus reserve fund to make up for losses, the company may, by special resolution of the shareholders' meeting, use the surplus reserve fund to distribute dividends at a rate not exceeding 6% of the par value of the shares. However, the company's statutory surplus reserve fund after distribution of dividends shall not be less than 25% of the registered capital. When the company's distributable profits are insufficient to pay dividends at a rate of no more than 6% of the stock's par value, the above method can also be followed. The company can distribute dividends in the form of cash or stocks. Dividends on the company's common shares should be distributed according to the proportion of shares held by each shareholder. National dividends are organized and collected in accordance with national regulations. The company shall withhold and remit the taxes payable on the dividend income of individual shareholders in accordance with the provisions of the tax authorities.
How to distinguish trading varieties based on coding
Due to the continuous prosperity and growth of my country's securities market, more and more varieties are currently listed for trading on the Shanghai and Shenzhen stock exchanges. In addition, now With the spread of paperless and electronic securities trading, trading varieties have their own listing codes for processing and trading, so the types and types of transactions can be distinguished from their codes. The trading varieties listed on the Shanghai Stock Exchange are all coded by 6 digits, while those in Shenzhen are all coded by 4 digits. The coding range is as follows:
The coding of Shanghai Stock Exchange:
100***Corporate convertible bonds 500***Fund 550***Investment fund 600***A shares 900***B shares 00****Treasury bond spot 12****Corporate bonds 201***Treasury bond buyback 700***Allotment
701***Transfer 710***Transfer 711*** transfer 72**** bonus 730*** new share subscription 740*** subscription payment 741*** subscription allocation 77**** government bond interest
Shenzhen Stock Exchange Coding:
0***A shares 2***B shares 3*** transfer, A2 allocation 53** corporate convertible bonds 4*** fund 7*** additional issuance 8*** Allotment, A1 allotment 10** Corporate bonds 18** Treasury bond repurchase 19** Treasury bond spot
Since 1996, the Shenzhen Stock Exchange has made corresponding adjustments to the securities coding of Treasury bond spot. The specific method is: " 19 + year number (1 digit) + number of treasury bond issuance periods in that year." The last digit in the original code was used to indicate the maturity of the treasury bond, but now it is used to indicate the number of issues (sequence number) of the treasury bond issued in that year.
What is the price-to-earnings ratio?
The price-to-earnings ratio is an important indicator that reflects the return and risk of a stock, also called the market price profitability ratio. It is the current market price per share divided by the company's after-tax profit per share. The calculation formula is as follows:
Price-to-earnings ratio = stock price per share / after-tax profit per share
In the Shanghai Stock Exchange's daily quotation table, the P/E ratio is calculated using the closing price of the day. The ratio to the after-tax profit per share of the previous year is called the P/E ratio I. The comparison with the predicted after-tax profit per share for the current year is called the P/E ratio II. . However, since companies listed in Hong Kong are not required to make profit forecasts, A-shares in the H-share sector (such as Tsingtao Beer) only have a price-to-earnings ratio I indicator. Therefore, the P/E ratio in a general sense refers to the P/E ratio I.
The process of stock ex-rights: When a listed company announces bonus shares or rights issues, before the bonus shares have been distributed and the rights issues have not yet been allotted, the stock is called a stock with rights. A joint-stock company that wants to go through the ex-rights procedures must first report to the competent authority for approval. After the ex-rights is approved, the company can determine the equity registration base date and the ex-rights base date. Any shareholder who owns the stock on the equity registration date has the right to receive or subscribe for equity, and can participate in dividends or allotment of shares. After the ex-rights date (generally the trading day next to the equity registration date) is determined, on the ex-rights day, the Shanghai Stock Exchange will prompt the stock abbreviation according to the different dividends. Adding XR before the stock name means ex-rights, XD means ex-dividend, and DR The rights and interests are divided together.
An ex-rights quotation will appear on the day of ex-rights. The calculation of the ex-rights quotation will be different due to dividends or paid allotment. The comprehensive formula is as follows: ex-rights price = (closing price on the day before ex-rights + allotment price X allotment price - dividend per share) / ( 1 + rights issue ratio + bonus issue ratio)
The opening price on the ex-rights day is not necessarily equal to the ex-rights price. The ex-rights price is only a reference price for the opening price on the ex-rights day. When the actual opening price is higher than this theoretical price, it is called filling in rights, and registered shareholders can make profits; conversely, when the actual opening price is lower than this theoretical price, it is called discounting rights. Filling in rights and discounting rights are the result of stock ex-rights. There are two possibilities, which are related to the conditions of the entire market, the operating conditions of listed companies, the proportion of rights distribution, and other factors. There is no definite rule to follow, but generally speaking, after the stock of a listed company is ex-rights after passing rights distribution, Its unit price has dropped, its liquidity has been further strengthened, and its room for upside has also increased. However, this does not allow listed companies to distribute goods at will. It must also regulate its own behavior based on the company's own operating conditions and relevant national regulations.
How to handle allotment of shares
Allotment of shares means that a listed company proposes a share allotment proposal to its existing shareholders after obtaining the necessary approvals, so that the existing shareholders can obtain the shares of the listed company based on their holdings. The act of subscribing for allotment shares in proportion to the shares. Allotment of shares is one of the ways for listed companies to issue new shares.
The operation procedure of allotment is as follows: first, the listed company determines the equity registration base date, shareholders hold stocks on the equity registration date, obtain allotment rights or obtain allotment warrants, and then the allotment warrants are listed for trading (currently, A Shares are not subject to warrant trading). After the transaction is completed, shareholders with allotment rights will purchase the allotment shares in proportion to the securities dealer through the exchange within the specified payment period. The exchange stipulates that after the payment period for the rights issue, the rights issue cannot be reissued, and it will be deemed that the shareholders have automatically given up their rights to the rights issue. At present, A-share allotment consists of four parts: one part is the allotment to public shareholders, generally called "** allotment" or "**A1 allotment". The listing code of the Shanghai Stock Exchange is "700***" and the Shenzhen Stock Exchange is " 8***", this part will be circulated immediately after subscription, and the other three types of rights issues shall not be circulated before the relevant national policies are promulgated. They are: the transfer of allotment rights of state shares and social legal person shares to public shareholders, generally called "** transfer" or "**A2 allotment", "** transfer", and the Shanghai stock market listing code is "710" ***", and the Shenzhen Stock Exchange is "3***". This is partly due to the fact that state shares and legal person shares are not yet tradable, and shareholders of state shares and legal person shares of listed companies have given up their allotment rights during the allotment of shares due to financial and other reasons. It is formed by transferring allotment rights to public shareholders; another part is the part subscribed by shareholders of the previous allotment, generally called "** transfer", code is "701***", this is based on the "same share" It arises from the principle of "equal rights", that is, the shareholders who participated in the previous allotment of shares participate in this allotment; there is also the transfer part of the allotment rights of the shareholders of the previous allotment of shares to subscribe for state shares and legal person shares, generally called "** transfer", code: "711***" is also an uncirculated part. After the allotment is completed, the tradable part of the stock exchange will arrange for listing and circulation after receiving the share report and capital verification report of the listed company regarding the allotment. The allotted tradable part will automatically be transferred to the shareholder's account to start circulation trading on the starting date of the alloted stock circulation.
What is shell listing?
The 15th National Congress of the Communist Party of China requires that "with capital as a link, we should form a highly competitive cross-regional, cross-industry and cross-ownership enterprise through the market." and large multinational group companies", so asset restructuring has become an important part of economic life. In the capital market, "shell listing" and "backdoor listing" have become a new landscape.
The so-called "shell listing" means that a dominant enterprise obtains the ownership, operating rights and listing status of the acquiree (listed company) through acquisition methods such as acquiring debt, holding shares, direct capital contribution, and purchasing stocks. At present, mergers and acquisitions in my country are generally carried out through secondary market mergers or through the agreed transfer of state shares and legal person shares. For example: Shanghai Guanshengyuan acquired 53.23% of the state-owned shares of Shanghai Light Industry Holdings; Hainan Fanhua and Shenzhen Genesis successively became the largest shareholders of Su Sanshan; Shandong Lanling Holdings held 51.9% of Huanyu shares, etc.
The reform idea of ??state-owned enterprises of the 15th National Congress is to "grasp the big ones and let go of the small ones". The asset restructuring of state-owned enterprises must be solved by market economy methods, that is, through the capital market, and cannot be solved by administrative means. Shell listing is a prominent feature of asset reorganization. It can greatly optimize resource allocation. As equity, as an economic resource, accelerates the flow and optimizes the combination, it is the inevitable result of the internal pressure of some poor-performing companies and the expansion impulse of superior enterprises. Since our country is in the primary stage of socialism and lacks experience in joint-stock reform, coupled with the economic weakness and competition in the market economy in the past few years, a number of "shell companies" have been formed over the past few years. However, some large groups, large companies and famous brand enterprises cannot be listed due to various conditions. These advantageous enterprises use their own strength to go public through shelling or backdoor listing, which can not only improve the quality of listed companies, but also change the plight of "shell companies" , injecting new vitality, and can also solve the development funds of advantageous enterprises and groups through asset restructuring, shelling and shelling of capital operations. Buying a shell to go public can generally bring about improvement in performance, and some can bring about radical changes. Generally, after being listed through shell buying, the shell company will be re-recognized by investors in the secondary market, causing the stock price to rise. Therefore, buying a shell to go public is an eternal theme of speculation in the secondary market. Since shell listing can bring about horizontal mergers, vertical mergers and mixed mergers, it is conducive to the large-scale and diversified development of advantageous enterprises. Therefore, in the new year, the depth and intensity of asset restructuring relying on the capital market will continue to increase, and the circulation of the capital market will be strengthened.
What is an investment fund?
The so-called investment fund is a collective investment system with maximum benefits and maximum risks. It concentrates the interests of investors through the issuance of fund securities. The funds are placed in the custody of the fund custodian and managed by the fund manager. They are mainly invested in financial instruments such as stocks and bonds. In layman’s terms, it means “everyone pools money to buy securities, sharing the blessings and sharing the hardships.”
The basic function of an investment fund is to collect funds from many investors and hand them over to specialized investment institutions for management. They will be specifically operated and used by securities analysts and investment experts to diversify the funds according to the set investment goals. In a specific asset portfolio, the investment income belongs to the original investors.
On November 14, 1997, my country’s Securities Commission of the State Council promulgated the “Interim Measures for the Administration of Securities Investment Funds” (hereinafter referred to as the “Measures”). According to the Measures, my country can establish open-end and closed-end funds. A closed-end fund means that the total issuance amount is determined in advance. The total number of fund units remains unchanged during the closed period. After the fund is listed, investors can transfer and buy and sell it through the stock exchange. Its price, like other listed securities, will be based on the premium of its net asset value or The discount and increase will be uncertain. An open-end fund means that the total issuance amount of the fund is not fixed. It increases when investors buy it and decreases when they redeem it. Investors can subscribe or redeem at a business place specified by the state according to the fund's quotation. Currently, all funds listed on the Shenzhen and Shanghai stock exchanges are closed-end funds.
The "Measures" stipulate that: the proportion of a fund's investment in stocks and bonds shall not be less than 80% of the fund's total asset value; a fund's holding of stocks of a listed company shall not exceed the fund's net asset value 10%; funds are not allowed to speculate on each other; the proportion of a fund's investment in national bonds must not be less than 20% of the fund's net asset value; open-end funds must maintain sufficient cash or national bonds to prepare for payment of ransom; fund income distribution It should be in the form of cash, at least once a year, and the distribution ratio should not be less than 90% of the fund's net income.
Because investment funds are operated by investment experts and securities analysis experts, they generally have higher returns. In 1991, the return rate of Hong Kong stock funds was 40.5%, that of U.S. stock funds was 30%, and that of Australian stock funds was 27.7%. According to my country's situation, the rate of return of my country's investment funds will also be good.
What is financial statement analysis
Financial statement analysis, also known as corporate financial analysis, is a comprehensive analysis and comparison of the relevant data in the financial statements of listed companies. Evaluate the company's financial condition and operating results.
For investors in the stock market, statement analysis belongs to the category of basic analysis. It is a dynamic analysis of corporate historical data and predicts the future based on studying the past in order to make correct investment decisions.
The financial statements of listed companies provide various statement users with various data and related information that reflect the company’s operating conditions and financial status. However, different statement users have different perspectives when reading the statements. focus. Generally speaking, shareholders are concerned about the company's profitability, such as main operating income, earnings per share, etc., but promoter shareholders or state shareholders are more concerned about the company's solvency, while ordinary shareholders or potential shareholders are more concerned about the company. development prospects. In addition, investors with different investment strategies have different emphasis on report analysis. Short-term investors usually care about the company's profit distribution and other information that can be used as "hype" topics, such as asset restructuring, tax exemption, product price changes, etc., in order to seek for profit. The rise in stock prices has resulted in short-term gains. Long-term investors are concerned about the company's development prospects, and they are even willing for the company not to pay dividends so that the company has more funds to expand production scale or due to the company's future development.
Although a company's financial statements provide a large amount of first-hand information for analysis, they are only a historical static document that can only generally reflect a company's financial status and performance over a period of time. This summary reflection of operating results is far from being the complete basis for investors to make investment decisions. It must compare the report with data in other reports or other data in the same report, otherwise it will not be of much significance. For example, in Qiong Minyuan's 1996 annual report, if you compare its main business income with non-operating income, I believe you will make a rational investment decision. Therefore, when conducting statement analysis, we should not focus solely on certain subjects, but should make comprehensive judgments on the company's financial statements and the macroeconomic aspects, make vertical and in-depth comparisons with the company's history, and make horizontal and wide comparisons with the same industry, and make accidental , discard non-essential things and obtain substantive information related to decision-making to ensure the correctness and accuracy of investment decisions.
How to read dynamic market charts
At present, most of our country's securities firms use the Qianlong dynamic analysis system provided by Qianlong Computer Software Co., Ltd. to reveal stock prices to investors. When investors trade stocks in the stock market, they usually read the market by looking at the real-time trend chart of the market and the real-time trend chart of individual stocks. Therefore, it is very important for investors to understand the meaning of the main graphics and indicators, and it is also important for investors to master the skills of reading the market. and the basics of conducting technical analysis. This article focuses on a brief introduction to dynamic real-time trend charts for reference only.
In the real-time market trend chart, the white curve represents the general market index (Shanghai Composite Index and Shenzhen Stock Exchange Component Index), that is, the weighted index; the yellow curve represents the non-weighted market index. That is, regardless of the size of the listed stocks, all stocks have the same impact on the index. Referring to the positional relationship between the white and yellow curves, we can get: when the index rises, the yellow line is above the white line, which means that small-cap stocks have a larger increase; conversely, the increase of small-cap stocks is smaller than that of large-cap stocks. When the index falls and the yellow line is still above the white line, it means that the decline of small-cap stocks is smaller than that of large-cap stocks; conversely, the decline of small-cap stocks is greater than that of large-cap stocks. There are red and green bars near yesterday's closing index as the central axis and the yellow and white lines, which reflect the strength of the rise or fall of the market index. When the red column line gradually grows, it means that the rising power of the index becomes stronger; when it shortens, the rising power weakens. When the green column line grows, it means that the downward force of the index has increased; when it shortens, the downward force of the index weakens. Below the graph, there are some yellow bars, which are used to represent the trading volume per minute. At the bottom of the real-time trend chart of the market, there is a red and green rectangular frame. The longer the red frame, the stronger the buying momentum; the longer the green frame, the greater the selling pressure.
In the real-time trend chart of individual stocks, the white curve represents the real-time transaction price of this stock. The yellow curve represents the average price of the stock. The yellow bars represent the volume per minute. When the transaction price is the selling price, it is an external market; when the transaction price is the buying price, it is an internal market. When the external market is larger than the internal market and the stock price rises, it indicates strong buying momentum; when the internal market is larger than the external market and the stock price also falls, it indicates strong selling pressure.
The volume ratio is the ratio of today's total number of lots to the average number of recent transactions. If the volume ratio is greater than 1, it means that the total number of transactions at this moment has been enlarged. When the volume increases and the price increases, the market outlook is promising; if it is less than 1, it means the total number of transactions is shrinking. The transaction details are displayed on the lower right side of the disk. The red and green colors of the price reflect the external market and internal market respectively, and the white color is the real-time transaction display.
What is transfer custody?
Transfer custody, also known as securities transfer custody, is a business specifically for the custody transfer of securities listed on the Shenzhen Stock Exchange. It means that investors place their custody in a certain Transferring securities listed on the Shenzhen Stock Exchange from a securities firm to another securities firm for custody is a voluntary act by investors. The securities purchased by the investor can only be sold at that brokerage. If the investor needs to transfer the shares to another brokerage for entrustment, he must go to the original custody brokerage to complete the custody transfer procedures. When going through custody transfer procedures, investors can transfer all their securities at once, or transfer part of the securities or part of the securities of the same type of securities. At present, the custody transfer business of the Shenzhen Stock Exchange is different from previous years. The current custody transfer business is handled through the trading system of the Shenzhen Stock Exchange. However, it should be noted that the securities types that are transferred to custody using the trading system are only included in A-shares, funds, convertible bonds, etc., warrants and treasury bonds listed on the Shenzhen Stock Exchange cannot be transferred to custody.